Cost savings highlighted at farm progress show
Recently Farm Progress Show in Boone, Iowa, turned its focus from new technology to the benefits of used tractors. The event attracted hundreds of farmers, including international visitors, all searching for the best deals on pre-owned equipment. BigIron Auctions showcased a significantly expanded inventory, indicating a strong market demand.
With the ongoing economic challenges marked by low grain prices, American farmers are increasingly adopting a cost-conscious approach. This has led to a noticeable reduction in new tractor sales, as noted by industry leaders like AGCO Corp., which recently reduced its sales forecast.
The secondary market for combines and other machinery is adjusting to this new reality. High-end combines that sold for over a million dollars are now entering auctions at substantially lower prices. This price adjustment reflects a broader trend of rapid turnover in nearly new equipment, especially appealing to international buyers seeking quality at lower costs.
The show also highlighted advancements in retrofitting older machines with new technology, allowing farmers to upgrade their existing equipment. This approach helps farmers keep pace with innovation while managing their budgets effectively.
The Farm Progress Show has become a crucial platform for discussing not just agricultural technology but also strategies for economic resilience in farming.